Nykaa Q3 Results: Net profit jumps 61.4% YoY to ₹26.12 crore

Nykaa Q3 Results: FSN E-Commerce Ventures, the operator of the Nykaa brand, on Monday reported an 61.43% year-on-year rise in its consolidated net profit (attributable to owners of the company) for the fiscal's third quarter ended December (Q3FY25) to ₹26.12 crore. The company had reported a profit of ₹16.18 crore in the year-ago period. Sequentially, the consolidated net profit was up 160.2%. Nykaa shares ended 1.69% lower at ₹170.52 apiece on BSE.

Nykaa's consolidated revenue from operations stood at ₹2,267.21 crores during the quarter ended December (Q3FY25) from ₹1,788.80 crore in Q3FY24, a year-on-year rise of 26.74%. Sequentially, the revenue was up by 21%.

The company disclosed expenses of ₹2,228.18 crore for the December quarter, reflecting a 26% increase compared to ₹1,769.89 crore reported in the same quarter of the previous financial year.

The firm announced an EBITDA of ₹141 crore for the quarter from October to December 2024, with margins during this time recorded at 6.2%.

Business Highlights:

Beauty - Multibrand Retail

In Q3FY25, the Beauty Vertical experienced impressive growth, recording a 32% year-over-year increase and achieving a gross merchandise value (GMV) of ₹3,389.9 crore. This growth was largely driven by an expanding customer base, with Nykaa's cumulative beauty customers rising to 32 million, and the One Nykaa platform reaching a cumulative total of 40 million customers. Notably, the order volume also surged by 30% year-over-year, marking the highest growth rate seen in the last nine quarters.

Fashion

Nykaa Fashion experienced a robust revenue growth of 21% year-over-year, even in a challenging demand landscape, with GMV rising by 8% year-over-year. LBB, Nykaa’s content platform, showed significant growth this quarter, propelled by highly effective marketing campaigns and events like Nykaaland and Nykaa wali Shaadi, contributing to overall increased revenue for the Fashion segment.

Network

In its filing, the company mentioned that the beauty retail network has been expanding each quarter. Nykaa now boasts 221 physical stores across 73 cities, having opened more than 47 stores in the past year. With a GMV productivity of ₹4,250 per square foot per month, Nykaa stood out as one of the most profitable store networks in the sector, the company said in an exchange filing.

The retail space grew to 2.1 lakh square feet, reflecting a 31% year-over-year increase, thanks to the introduction of larger stores, including flagship locations. These expanded stores feature a premium selection through shop-in-shop formats and provide unique beauty services, resulting in higher average order values and increased profitability, the company said.

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